London midday: Stocks rise as BoE votes unanimously to keep rates unchanged

The BoE’s Monetary Policy Committee decided to maintain its key rate at 0.50% and its asset purchase programme at £375bn amid low inflation and weak global growth.

Analysts had expected an 8-1 vote with MPC member Ian McCafferty voting in favour of a rate hike. However, this time McCafferty agreed it was best to hold rates steady.

“In December, 12-month CPI inflation stood at 0.2%, almost 2 percentage points below the inflation target,” the Inflation Report said.

“Oil prices were more than a third lower, in sterling terms, than a year earlier.”

The Inflation Report warned that global growth had fallen further over the past three months, dragged by emerging economies. Weak wage growth in the UK was also highlighted in the report.

In economic data, people took advantage of low interest rates in January with high demand in the property market pushing house prices up in January, according to Halifax. UK house prices rose 1.7% in January compared to a month ago, surging past analysts’ expectations for a 0.1% increase. House prices increased 2% month-on-month in December.

On the year house prices jumped 9.7% in January compared with a 9.5% annual increase in December. Analyst had predicted a 9% gain.

UK car sales enjoyed their strongest January performance for 11 years, with new car registrations rising 2.9% in the month after what was already a record year in 2015. Private registrations fueled the growth, data for January from the Society of Motor Manufacturers showed, soaring 8.2% to their highest level since 2004 of 73,061 vehicles.

Meanwhile, oil prices were little changed in midday trade amid reports of potential talks between global oil producers to curb the supply glut. Venezuela's oil minister Eulogio del Pino told Iranian news agency Shana on Wednesday that six producing countries including OPEC members Iran and Iraq and non-members Russia and Oman, supported a meeting

Brent crude fell 0.1% to $35.00 per barrel and West Texas Intermediate climbed 0.61% to $32.48 per barrel at 1144 GMT.

Still to come, US initial jobless claims figures will be released at 1330 GMT, while reports on US durable goods orders and factory orders will be published at 1500 GMT.

In company news, oil producers were sitting higher on the earlier rally in crude prices. Even Royal Dutch Shell gained after posting an 80% fall in full year profit.

Astrazeneca dropped after warning that the expiry of the patent on its anti-cholesterol drug Crestor will cut its profits this year as cheaper, generic versions come to the market.

Smith & Nephew declined after saying full year revenue has remained flat for the year to 31 December 2015, while reported operating profit dipped.

Vodafone was in the red after reporting a 6.3% drop in revenue on a reported basis in the three months to 31 December 2015.

Beazley jumped after the insurer reported an 8% increase in full year pre-tax profit that beat the company’s expectations.

Market Movers

FTSE 100 (UKX) 5,909.07 1.23%
FTSE 250 (MCX) 16,079.22 0.54%
techMARK (TASX) 3,078.86 -0.21%

FTSE 100 - Risers

Anglo American (AAL) 305.60p 11.66%
BHP Billiton (BLT) 694.60p 7.99%
Antofagasta (ANTO) 403.60p 7.45%
Rio Tinto (RIO) 1,805.50p 7.15%
Glencore (GLEN) 91.79p 6.79%
Royal Dutch Shell 'A' (RDSA) 1,528.50p 6.29%
Royal Dutch Shell 'B' (RDSB) 1,527.50p 6.26%
Old Mutual (OML) 161.70p 6.17%
Aberdeen Asset Management (ADN) 235.80p 5.13%
Standard Chartered (STAN) 432.50p 4.42%

FTSE 100 - Fallers

Coca-Cola HBC AG (CDI) (CCH) 1,333.00p -4.79%
AstraZeneca (AZN) 4,229.00p -4.15%
Imperial Tobacco Group (IMT) 3,633.00p -2.56%
Unilever (ULVR) 2,979.00p -1.36%
International Consolidated Airlines Group SA (CDI) (IAG) 516.50p -1.34%
Johnson Matthey (JMAT) 2,377.00p -1.25%
Vodafone Group (VOD) 210.80p -0.99%
Diageo (DGE) 1,854.50p -0.80%
Reckitt Benckiser Group (RB.) 6,210.00p -0.80%
British American Tobacco (BATS) 3,775.00p -0.79%

FTSE 250 - Risers

Tullow Oil (TLW) 175.90p 9.12%
Vectura Group (VEC) 180.50p 6.80%
Evraz (EVR) 60.20p 5.52%
BGEO Group (BGEO) 1,790.00p 5.17%
Investec (INVP) 435.60p 4.79%
Drax Group (DRX) 261.10p 4.73%
Amec Foster Wheeler (AMFW) 398.70p 4.51%
Ophir Energy (OPHR) 87.55p 4.35%
Centamin (DI) (CEY) 69.75p 3.64%
Allied Minds (ALM) 305.00p 3.39%

FTSE 250 - Fallers

Just Eat (JE.) 330.60p -3.95%
ICAP (IAP) 460.50p -2.33%
PZ Cussons (PZC) 271.80p -1.84%
Sophos Group (SOPH) 230.60p -1.75%
Jardine Lloyd Thompson Group (JLT) 816.50p -1.63%
Victrex plc (VCT) 1,425.00p -1.52%
Rightmove (RMV) 3,883.00p -1.42%
Entertainment One Limited (ETO) 141.00p -1.40%
Lookers (LOOK) 157.10p -1.32%
Wetherspoon (J.D.) (JDW) 683.00p -1.30%